Stock Market: Nifty holds 19.6k in resilience show; banks show way to bounce

Spread the love

By S Jha

New Delhi, September 25: Indices on Monday broke four-day of losing streak amid signs of crude oil price losing steam, as well as Canada-India row not going worse any further. Chartists had been praying Nifty to hold 19600 level, seen as a make or break line of support, and the index almost kissed the line to rebound with new energy. But that was possibly because of the Bank Nifty leading the show.

Even while Nifty had gone to the level of 20250, Bank Nifty is far from its peak of 46000 seen a few months ago. The consensus view among the participants is that the Bank Nifty is oversold. Bank Nifty’s bearishness is explained to battering taken by HDFC bank, while other index leaders not showing signs of strength.

But Kotak Mahindra Bank rose to the occasion on Monday in the company of bullish PSU banking stocks to give strength to Bank Nifty, which not only recovered a loss of over 200 point but staged a gain of 320 points in the day until ‘sell on the rise’ theme returned as part of a pattern when the bourses attempt recovery after days of selling.

For days, Punjab National Bank and Bank of Baroda have been leading the show in the Bank Nifty for the PSU banks. Canara Bank has also been highly bullish. While State Bank of India showed signs of strength, the scrip is now seen to be range bound, trading in the range of Rs 585-625.

News flow drove Bajaj Finance higher, as the non-banking finance company seeks to raise funds. Brokerages are going bullish on the scrip. Maruti is firm technically as per chartists and the scrip scaled the level of Rs 10700 during the day, while paring the gains afterwards. Maruti is seen to have broken out from a multi-year resistance, and the chartists are sounding bullish.

Sugar stocks once more gained on the bourses amid claims of low acreage as well as ethanol play in the sector. While the railway stocks were marginally up, not giving up their bullish momentum, IRCTC gained firmly amid the investors taking a hard look at the scrip, which has been most laggard among the railway stocks.